Ripple Nears $50M SEC Settlement—Could XRP Finally Be Free?

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According to recent reports, Ripple CEO Brad Garlinghouse told Fox Business on 11 April that the company has reached a potential $50 million Ripple vs SEC settlement agreement with the SEC pending final commissioner approval.

The resolution is part of a larger $125 million escrow, it indicates regulatory thaw and institutional confidence in crypto regulation in the United States. “We even talked about making that available in XRP,” Garlinghouse said, suggesting XRP’s growing legitimacy in regulatory eyes.

From Regulatory Resistance to Reluctant Recognition

Garlinghouse credited a change in leadership at the SEC and the White House for the breakthrough, “This is a big deal.” Under the terms discussed, Ripple would get to keep most of the escrowed funds, a partial win for the company and perhaps a sign of a broader shift in how digital assets are treated.

“The SEC is going to get $50 million. The U.S. government is going to get $50 million,” Garlinghouse said. “I think people underestimate how the largest economy in the world—the United States—went from headwinds, hostility to tailwinds.”

XRP’s regulatory status has been one of the biggest issues in crypto for years. The SEC lawsuit, filed few years back, accused Ripple of conducting an unregistered securities offering. Ripple has always said XRP is a currency not a security, a position that seems to be gaining traction after the July 2023 ruling that sales to institutional investors could be considered securities but retail transactions were not.

XRP’s Legitimacy on the Rise

Just the idea of settling in XRP shows how far XRP and Ripple have come. The final terms are still under review by the SEC but this is seen by many as a validation of XRP’s role as a bridge asset for global payments and liquidity.

Legal analysts say if the SEC accepts XRP as part of a settlement, it would be a tacit recognition that it is not per se a security, something Ripple has been saying for years.

This follows a general sense of crypto optimism where regulatory uncertainty has been a headwind. Now Ripple can move forward in the U.S. with a “more stable and pro-innovation environment”.

Bitcoin’s Institutional Tailwinds

While Ripple’s victory gets the headlines, Garlinghouse also talked about Bitcoin’s trajectory, making a bold prediction that matches the broader sentiment.

He referenced recent predictions from Cardano founder Charles Hoskinson, who said Bitcoin could hit $250,000 by year-end end and Garlinghouse said

“I will predict Bitcoin… I think $200,000 is not unreasonable”.

He said the market has not yet priced in the significance of US regulatory changes and institutional adoption. This is at a time when spot Bitcoin ETFs have seen billions in inflows and hedge funds like Millennium Management have over $2 billion in Bitcoin ETF holdings in recent SEC filings.

Broader Implications for Crypto Regulation

The Ripple vs SEC settlement comes at a time when ‘lawmakers are getting more involved with crypto legislation. US Congress is debating the Financial Innovation and ‘Technology for the 21st Century Act (FIT21) which could define the roles of the SEC and the Commodity Futures Trading Commission (CFTC) more clearly in the oversight of digital assets.

Hopes and expectations are that the Ripple vs SEC settlement goes as planned

Crypto leaders are watching this case not just for XRP but for what it means for future SEC actions under Chair Gary Gensler or his successor if the political winds shift further.

Conclusion: Turning a Legal Chapter Into a Growth Catalyst

Ripple’s proposed $50 million XRP settlement with the SEC is not just the end of a legal chapter but a change in Washington’s approach to crypto oversight. With the US government now more open to innovation in the digital asset space, companies like Ripple may find themselves in a more collaborative environment.

Coupled with Garlinghouse’s $200,000 Bitcoin prediction, the developments suggest institutional confidence in crypto is accelerating. If the Ripple vs SEC settlement becomes the blueprint, it may define a new regulatory chapter, one where cooperation, not litigation, shapes the future of crypto in the US.

FAQs

What is the focus of the Ripple vs SEC settlement?

Ripple is proposing a $50 million settlement with the SEC, possibly paid in XRP. This would be the end of the long standing lawsuit that started in 2020.

Has the SEC accepted XRP as a legal currency?

The SEC has not made a formal ruling on XRP being a non-security. But accepting a settlement in XRP would be a sign of progress.

What did Brad Garlinghouse say about Bitcoin’s price?

Ripple’s CEO said Bitcoin could hit $200,000 due to changing regulations and institutional demand.

When will the Ripple SEC settlement be done?

Waiting for SEC commissioner approval. No timeline given.

How will this affect XRP’s price?

If approved, it will boost investor confidence in XRP and potentially drive up demand and price.